All Forum Posts by: Steve K.

Originally posted by @Mike D.:

Covid will be gone by December but I don't see them letting this expire in the dead of winter. Better find some 800 credit score tenants!

I had one when all this started and she was the first one to leave because of job loss. 

@Account Closed Sure, they will take advantage. One of our leases expired at end of June. Our leases have automatic renewal clause. Tenants and I got into argument and they gave their notice to leave by Aug 31st. However, they never signed a formal document to sever the lease that I ask them to, so they are still in lease. They are still living there. They are still paying tho. Paying late and I know there financial condition is better during the pandemic. Both of them are working now. Good luck getting them out

@Warren A. Legal or not. It is what it is. Courts take time to decide and 4 months will pass before courts even listen to this argument. How many back months of rents do they owe? Where is your property located? 

I operate in PA as well. I didn't not hear about anything about special rulings in PA. If she is unemployed and wants to rent, she must prove that she is employed and it's your decision to accept or deny.

(We recently approved partially unemployed tenants in our apartment, previous ones left in the middle because of covid job loss. I was nice to let them walk away without penalty. They left 15 days early as well and I was able to rent fast.)

Ask her to send you the ruling and It must be from a .gov site. I had a tenant ask me for rent breaks etc when all this started to unfold in March and I exactly did that. This prospective may not contact you again if you ask more questions.

I second Russell's instincts, she most probably will stop paying you.

Originally posted by @Account Closed:

@Steve K. Sounds like you dodged a bullet there.

Yes, few bullets that weren't even fired. (Our newly acquired 40-50 spot parking lot would have been empty during this time)

I'm evaluating more investments as I write this. This no deal should remind me that emotions should never be part of a deal.

@Anthony Sgro How about getting a Commercial loan on property you don't live in? Terms are shorter and interest is 1+% higher. As long as you meet lender's DSCR or DCR 1.25+/- number. Keep in mind that due to COVID19 lending underwriting guidelines must have changed. I spoke with one today and that is what they said.

I did not find anything that comes close to Propstream. We use PS as well. We are still exploring better skip tracers. It's a YMMV thing. If you find a great one, I would like to hear your observations as well.

Good Luck!

We walked away from one last year and I'm glad that we did. I came into the deal after it was under contract. We planned to lend on it then decided to JV on it. I missed was running numbers, assuming other partner already ran it. On top of that the seller fudged expenses as well. Everything was coming up high, even insurance quote came high.

What really ticked me off was when seller emailed by partner about low oil in the building over the weekend before settlement. She didn't wanted to fill-up in middle of cold winter. We were closing in 2-3 days on Tuesday. I emailed her a copies of cashier checks that I had ready and offered to pay for oil at closing if she presents the oil delivery receipts. In my email, I told her and her lawyer that we have not settled yet, it's still her building and she need to get the oil delivered.

It was a commercial property and we later found out her occupancy numbers were also fudged. We got actual numbers few hours before closing. I called off the settlement within few hours of reevaluating the numbers. We did not settle indeed. I lost few thousands and my partner lost much more. That property is still not sold till date. It was never a good deal. No regrets.

Personal Income Tax is really not an expense and it's relative to how much more or how much less you make. It should not be included in the property calculations. Moreover, it will vary when you have more properties or your income grows. So, what number will you go with? Like it or not that need to be paid your partner Uncle Sam or his Canadian equivalent cousin.

Some jurisdictions in the US levy a Gross Receipts Tax or the business privilege tax, which is small percentage of your rental gross income. That would be considered an expense.

You certainly must come up with creative strategies, with help of your CPA, to reduce your tax burden. There is some many way you can reduce if not eliminate that.

@Todd Powell Wow! That is crazy....Narrowminded and jealous people/employers are all around. Too bad that your employer/boss was one of them. Firing you was their loss.

For instance, I know my worth and the value I bring to my W2 employer. I also know that they will have to pay 2x to 4x more when they replace me.

I'm very careful posting on Social Platforms as well.

Good luck with your new W2. All the best in your journey to be financially free!

@Jonathan R McLaughlin Thank you. All points noted and some have already been implemented. As of now we have a extended them courtesy to receive delayed payment again, by 10th of this month. Late fee didn't come in the discussions. However, we stand firm to collect full payment on August 1st. Depending on how it goes, we can look re-visit lease extension.